WISCONSIN ELECTRIC ANNOUNCES TENDER OFFER FOR $60 MILLION OUTSTANDING 9-1/8 PERCENT FIRST MORTGAGE BONDS
Will Also Sell $60 Million First Mortgage Bonds MILWAUKEE, July 28 /PRNewswire/ -- Wisconsin Electric Power Co.
announced today that it will seek to buy back $60 million of First Mortgage Bonds, 9-1/8 percent Series due Sept. 1, 2024, by way of a fixed spread tender offer. The offer commences today, July 28, 1993, and will expire on Aug. 4, 1993, at 5:00 p.m. EST. Salomon Brothers Inc is acting as exclusive dealer manager of the tender.
To finance the refunding, Wisconsin Electric has agreed to sell $60 million of First Mortgage Bonds, 7.05 percent Series due Aug. 1, 2024, through an underwritten offering by Salomon Brothers Inc scheduled to close on Aug. 11, 1993. The 7.05 percent Series Bonds are being offered to the public at 97.100 percent of the principal amount to yield 7.287 percent. The bonds are preliminarily rated (P)AA+ by Standard and Poor's, (P)Aa2 by Moody's, and (P)AA+ by Duff and Phelps. Proceeds from the sale will be added to the general funds of the company and used primarily for the refunding of the 9-1/8 percent Series Bonds. The price of the tender will be set each day based on a fixed spread of 15 basis points over the yield on the 4.25 percent U.S. Treasury Note due Aug. 31, 1994. Daily prices will appear on MCM "CORPORATEWATCH" Service on Telerate page 41946 and on Bloomberg under "Company News." The company is purchasing the 9-1/8 percent Series Bonds as part of its continuing effort to reduce the average cost of its debt in the current low interest rate environment. Wisconsin Electric, the principal subsidiary of Wisconsin Energy Corp. (NYSE: WEC), is engaged primarily in the generation, transmission, distribution, and sale of electric energy in southeastern (including the Milwaukee area), east central and northern Wisconsin, and in the Upper Peninsula of Michigan. This news release is neither an offer to purchase nor a solicitation of an offer to sell the 9-1/8 percent Series Bonds. The tender offer is made only by a letter to Bondholders. The new First Mortgage Bonds are being offered only by means of a prospectus, copies of which may be obtained from the underwriter. -0- 7/28/93 /CONTACT: Charles Ziegler of Wisconsin Electric Power, 414-221-4444 or 414-221-2896/ (WEC)
CO: Wisconsin Electric Power Co.; Wisconsin Energy Corp. ST: Wisconsin IN: UTI SU: OFR FIN
AR -- CL026 -- 6923 07/28/93 16:38 EDT